Acadia Parish Communications Districtapp1.lla.state.la.us/PublicReports.nsf/EDE182C51...ACADIA PARISH COMMUNICATIONS DISTRICT FINANCIAL REPORT DECEMBER 31, 2006 Under provisions of

ACADIA PARISH COMMUNICATIONS DISTRICT

FINANCIAL REPORT

DECEMBER 31, 2006

Under provisions of state law, this report is a publicdocument. Acopy of the report has been submitted tothe entity and other appropriate public officials, Thereport is available for public inspection at the BatonRouge office of the Legislative Auditor and, whereappropriate, at the office of the parish clerk of court.

Release Date

C O N T E N T S

Exhibit/Schedules

INDEPENDENT AUDITORS' REPORT

GOVERNMENT-WIDE FINANCIAL STATEMENTS

Statement of net assetsStatement of activities

FUND FINANCIAL STATEMENTS

Balance sheet - governmental fundsReconciliation of the governmental fundsbalance sheet to the statement of net assets

Statement of revenues, expenditures, andchanges in fund balances - governmental funds

Reconciliation of the statement of revenues,expenditures, and changes in fund balancesof governmental funds to the statement ofactivities

Notes to financial statements

REQUIRED SUPPLEMENTARY INFORMATION

Budgetary comparison schedule:General fundWireless technology fund

Note to the budgetary comparison schedules

OTHER SUPPLEMENTARY INFORMATION

Nonmajor Governmental Funds:Combining balance sheetCombining statement of revenues, expenditures,and changes in fund balances

REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHERMATTERS BASED ON AN AUDIT OF FINANCIALSTATEMENTS PERFORMED IN ACCORDANCE WITHGOVERNMENT AUDITING STANDARDS

Schedule of findings and responses

Schedule of prior findings

AB

G-lG-2G-3

H-l

H-2

Page

1 and 2

C 8 and 9

D 10

E 12 and 13

1415 - 24

26 and 272829

32

33

35 and 36

1-1 37 and 38

1-2 39

BROUSSARD, POCHE, LEWIS & BREAUX, L.L.P.

C E R T I F I E D P U B L I C A C C O U N T A N T S

4112 West CongressP. O. Box 61400

Lafayette, Louisiana 70596-1400

phone: (337) 988-t930fax: (337) 984-4574

www.bplb.com

Other Offices:

Crowley, LA(337) 783-5693

Opelousas, LA{337)942-5217

Abbeville, LA(337)898-1497

New Iberia, LA(337) 364-4554

Church Point, LA(337) 684-2855

Herbert Lemoine II, CPA*

Frank A. Stagno, CPA*

Scott J. Broussard, CPA*

L. Charles Ahshire, CPA*

P. JohnBlanrhet III, CPA*

Craig C. Babineaux, CPA*

Peler C. Borrello, CPA*

George J. Trappey III, CPA*

Martha B. Wyatt, CPA*

Fayetta T. Dupre CPA*

Mary A. CastHIe, CPA*

Joey L. Breaux, CPA*

Terrel P. Dressel, CPA*

Craig J. Viator, CPA*

Stacey E. Singleton, CPA*

John L. Istre, CPA*

R e t i r e d :

Sidney L. Broussard, CPA 1925-2005

Leon K. Porhe, CPA 1984

James H. Breaux, CPA 1987

Erma R. Walton, CPA 1988

George A. Lewis, CPA* 1992

Geraldine J. Wimherley, CPA* 1995

Lawrence A. Cramer, CPA* 1999

Ralph Friend, CPA* 2002

Donald W. Kelley, CPA* 2005

INDEPENDENT AUDITORS' REPORT

To the Honorable Wayne Melanconand the Board of Commissioners of theAcadia Parish Communications District

Crowley, Louisiana

We have audited the accompanying financial statements of thegovernmental activities, each major fund, and the aggregateremaining fund information for the Acadia Parish CommunicationsDistrict, a component unit of the Acadia Parish Police Jury, as ofand for the year ended December 31, 2006, which collectivelycomprise the Acadia Parish Communications District's basicfinancial statements, as listed in the table of contents. Thesefinancial statements are the responsibility of the District'smanagement. Our responsibility is to express opinions on thesefinancial statements based on our audit.

We conducted our audit in accordance with auditing standardsgenerally accepted in the United States of America and thestandards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the UnitedStates. Those standards require that we plan and perform the auditto obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides areasonable basis for our opinions.

In our opinion, the financial statements referred to above presentfairly, in all material respects, the respective financial positionof the governmental activities, each major fund, and the aggregateremaining fund information of the Acadia Parish CommunicationsDistrict as of December 31, 2006, and the respective changes infinancial position thereof for the year then ended in conformitywith accounting principles generally accepted in the United Statesof America.

- 1 -

*A Professional Accounting Corporation

In accordance with Government Auditing Standards, we have also issued our report datedJune 11, 2007, on our consideration of the Acadia Parish Communications District'sinternal control over financial reporting and our tests of its compliance with certainprovisions of laws, regulations, contracts and grant agreements and other matters. Thepurpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to providean opinion on the internal control over financial reporting or on compliance. Thatreport is an integral part of an audit performed in accordance with Government AuditingStandards and should be considered in assessing the results of our audit.

The District has not presented Management ' s Discussion and Analysis that accountingprinciples generally accepted in the United States of America has determined isnecessary to supplement, although not required to be part of the basic financialstatements .

Our audit was conducted for the purpose of forming opinions on the financial statementsthat collectively comprise the Acadia Parish Communications District's basic financialstatements. The accompanying financial information listed as other supplementaryinformation and the budgetary comparison information listed as required supplementaryinformation in the table of contents are presented for the purposes of additionalanalysis and are not a required part of the basic financial statements of Acadia ParishCommunications District. Such information has been subjected to the auditingprocedures applied by us in the audit of the basic financial statements and, in ouropinion, such information is fairly stated in all material respects in relation to thebasic financial statements taken as a whole.

Lafayette, LouisianaJune 11, 2007

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GOVERNMENT-WIDE FINANCIAL STATEMENTS

- 3 -

ACADIA PARISH COMMUNICATIONS DISTRICTACADIA PARISH POLICE JURY

STATEMENT OF NET ASSETSDecember 31, 2006

Exhibit A

ASSETS

CashCertificates of depositAccounts receivableDue from other governmental agenciesBond issue costs, net of

accumulated amortization of $4,096Capital assets:

LandDepreciable, net

Total assets

$1,052,158725,01796,4807,260

5,117

54,000927,956

$2.867.988

LIABILITIES AND NET ASSETS

LIABILITIESAccounts payableAccrued interest payableLong-term liabilities:

Portion due or payable within one year -Bonds payable

Portion due or payable after one year -Bonds payable

Total liabilities

NET ASSETSInvested in capital assets, net of related debtRestricted for:

Debt serviceOther purposes

Unrestricted

Total net assets

Total liabilities and net assets

$ 61,93810,313

55,000

445,000

$ 572,251

$ 487,073

55,0002,264

1,751,400

$2,295,737

$2.867.988

See Notes to Financial Statements.

- 4 -


STATEMENT OF ACTIVITIESFor the Year Ended December 31, 2006

Exhibit B

Net (Expense)

Funct ion/ProgramGovernmental activities:

Public safetyInterest on long-term

debtTotalgovernmentalactivities

Expenses

Program RevenuesFees and Capital

Charges for Grants andServices Contributions

Revenue andChange inNet Assets

GovernmentalActivities

$ 441,403 $ 612,419 $

21,917

$ 463.320 $ 612,419 |

General revenues:Inves tment earningsMiscellaneous

Total general revenues

Change in net assets

Net assets, beginning

Net assets, ending

18,516 $ 189,532

(21,917)

18,516 $ 167,615

31,408143

31,551

$ 199,166

2,096,571

$ 2,295.737


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This page is intentionally left blank.

- 6 -

FUND FINANCIAL STATEMENTS

- 7 -


BALANCE SHEETGOVERNMENTAL FUNDSDecember 31, 2006

ASSETS

CashCertificates of depositAccounts receivableDue from other governmental agencies

Total assets

GeneralFund

$263,059115,01722,6897,260

WirelessTechnology

Fund

$ 657,650500,00049,985

$1,207,635

LIABILITIES AND FUND BALANCES

LIABILITIESAccounts payable

FUND BALANCESReserved for:

Debt serviceGrant expenditures

Unreserved - undesignated

Total fund balances

Total liabilities and fund balances

$ 56,838

$2,264

348,923

$351,187

$408.025

5,100

1,202,535

$1,202,535

$1,207.635


Exhibit C

DebtServiceFund

$ 65,430

$ 65.430

OtherGovernmental

Funds

$ 66,019110,000

176,019

TotalGovernmental

Funds

$ 1,052,158725,01772,6747,260

S 1,857.109

-0- -0- 61,938

$

$$

65,313-117

65,430

65,430

$

$

$

$-

176,019

176,019 $

176,019 S

65,2,

1,727,

1,795,

1,857,

313264594

171

109

- 9 -

Exhibit D


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEETTO THE STATEMENT OF NET ASSETS

December 31, 2006

Total fund balances - governmental funds

Total net assets reported for governmentalactivities in the statement of net assetsis different because:

Capital assets used in governmentalactivities are not financial resourcesand therefore are not reported in thefunds.

Capital assets, net

Long-term liabilities, including bondspayable, are not due and payable inthe current period and are thereforenot reported in the governmental funds.

Accrued interest payableBonds payable

Bond issue costs which are reported asexpenditures in the year incurred inthe governmental funds are deferredand amortized in the statement ofactivities.

Bond issue costs, net

Some revenues were collected more than60 days after year end and thereforeare not available soon enough to payfor current period expenditures.

Net assets of governmental activities

$1,795,171

981,956

$ (10,313)(500,000) (510,313)

5,117

23,806

52,295.737


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This page intentionally left blank.

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STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES

GOVERNMENTAL FUNDSFor the Year Ended December 31, 2006

Revenues:Charges for servicesIntergovernmental -

OtherInvestment earningsMiscellaneous

Total revenues

Expenditures:Current -

Public safetyDebt service -

PrincipalInterest

Capital outlay

Total expenditures

Exces s (def ici ency) o f revenuesover expenditures

Other financing sources (uses):Transfers inTransfers out

Total other financingsources (uses)

Net change in fund balances

Fund balances, beginning

Fund balances, ending

GeneralFund

$266,084

1,0505,91118,659

$291,704

$240,861

18,516

$259,377

$ 32,327

$ 3,662

$ 3,662

$ 35,989

315,198

5351.187

WirelessTechnology

Fund

$ 321,479

21,236

$ 342,715

$ 159,086

$ 159,086

$ 183,629

$ 311,002(85,849)

$ 225,153

$ 408,782

793,753

$1,202.535


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Exhibit E

DebtServiceFund

-0-

50,00021,676

$ 71,676

$(71,676)

$ 85,849

$ 85,849

$ 14,173

51,257

$ 65,430

OtherGovernmental

Funds

4,261

4,261

7,982

7, 982

(3,721)

2,498(317,162)

(314,664)

(318,385)

494,404

176,019

TotalGovernmental

Funds

$

$

$

$

$

$

$$

$

587,

1,31,18,

638,

407,

50,21,18,

498,

140,

403,(403,

140,

1,654,

1,795,

563

050408659

680

929

000676516

121

559

OilOil)

-0-

559

612

171

- 13 -

Exhibit F


RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIESFor the Year Ended December 31, 2006

Net change in fund balances - total governmental funds $140,559

The change in net assets reported for governmentalactivities in the statement of activities isdifferent because:

Governmental funds report capital outlays asexpenditures. However, in the statement ofactivities the cost of those assets isallocated over their estimated useful livesand reported as depreciation expense.

Capital outlay $ 18,516Depreciation expense (33,474) (14,958)

Repayment of principal on bonds payable is anexpenditure in the governmental fund in 4thefund financial statements, but reduces theliability in the statement of net assets inthe government-wide financial statements. 50,000

Some expenses reported in the statement of activitiesdo not require the use of current financial resourcesand therefore, are not reported as expenditures ingovernmental funds.

Decrease in accrued interest payable 1,031

Governmental funds report the effect of issuance costs,premiums, discounts and similar items when debt isfirst issued, whereas these amounts are deferred andamortized in the statement of activities.

Bond issue costs amortized (1,272)

Some revenues were collected more than 60 days afteryear end and therefore are not available soonenough to pay for current period expenditures. 23,806

Change in net assets of governmental activities $199,166


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NOTES TO FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

The financial statements of the Acadia Parish Communications District (the"District") have been prepared in conformity with generally acceptedaccounting principles {GAAP). The Governmental Accounting Standards Board(GASB) is responsible for establishing GAAP for state and local governmentsthrough its pronouncements (Statements and Interpretations). The moresignificant of the District's accounting policies are described below.

Reporting entity:

The District was created pursuant to the directions of an ordinance of theAcadia Parish Police Jury and was established for the purpose of creatingand maintaining an enhanced 911 emergency service. The District isgoverned by seven commissioners. These seven commissioners are referred toas the Board of Commissioners and are appointed by the Acadia Parish PoliceJury. The Board of Commissioners is not compensated.

Because the Acadia Parish Police Jury appoints the Board of Commissionersof the District and can influence the scope of public service, the Districtis determined to be a component unit of the Acadia Parish Police Jury, thegoverning body of the parish and the governmental entity with oversightresponsibility. The accompanying financial statements present informationonly on the funds maintained by the District and do not present informationon the Acadia Parish Police Jury, the general government services providedby that governmental entity, or the other governmental entities thatcomprise the financial reporting entity.

Basis of presentation:

The District's financial statements consist of the government-widestatements and the fund financial statements. The statements are preparedin accordance with accounting principles generally accepted in the UnitedStates of America as applied to governmental units.

Government-wide financial statements -

The government-wide financial statements include the statement of netassets and statement of activities of the District. The effect ofinterfund activity has been removed from these statements.Governmental activities generally are financed through taxes,intergovernmental revenues and other nonexchange transactions;however, the District's activities are mainly financed by servicecharges collected from phone and communication companies.

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In the government-wide statement of net assets, the governmentalactivities are reported on a full accrual, economic resource basis,which recognizes all long-term assets and receivables as well aslong-term debt and obligations. The District's net assets arereported in three parts - invested in capital assets, net of relateddebt, restricted net assets, and unrestricted net assets. TheDistrict first utilizes restricted resources to finance qualifyingactivities.

The government-wide statement of activities reports both the gross andnet cost of each of the District's functions. The functions are alsosupported by general government revenues {intergovernmental revenues,interest income, etc.). The statement of activities reduces grossexpenses (including depreciation) by related program revenues andoperating grants. Program revenues must be directly associated withthe function. Operating grants include operating-specific anddiscretionary (either operating or capital) grants.

The net cost (by function) is normally covered by general revenue(intergovernmental revenues, interest income, etc.).

The government-wide focus is more on the sustainability of theDistrict as an entity and the change in the District's net assetsresulting from the current year's activities.

Fund financial statements -

The fund financial statements provide information about the District'sfunds. The emphasis of fund financial statements is on majorgovernmental funds, each displayed in a separate column. Allremaining governmental funds are aggregated and reported as nonmajorfunds.

The District reports the following major governmental funds:

General Fund - This is the general operating fund of the Districtand accounts for all financial resources except those required to beaccounted for in another fund.

Wireless Technology Fund - This fund is used to account for theproceeds and disbursements of revenues received by collection ofservice charges from cellular and two-way telecommunication servicesubscribers.

Debt Service Fund - This fund is used to account for theaccumulation of money to service the bonds outstanding.

- 16 -


Basis of accounting:


The government-wide financial statements are reported using the economicresources measurement focus and the accrual basis of accounting.Revenues are recorded when earned and expenses are recorded when aliability is incurred, regardless of the timing of related cash flows.Nonexchange transactions, in which the District gives (or receives) valuewithout directly receiving (or giving) equal value in exchange, includegrants, entitlements and donations. Revenue from grants, entitlementsand donations is recognized in the fiscal year in which all eligibilityrequirements have been satisfied.

Governmental fund financial statements -

Governmental funds are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Underthis method, revenues are recognized when measurable and available."Measurable" means the amount of the transaction can be determined and"available" means collectible within the current period or soon enoughthereafter to be used to pay liabilities of the current period. Revenuefrom grants, entitlements and donations is recognized in the fiscal yearin which all eligibility requirements have been satisfied. All otherreceivables collected within 60 days after year end are consideredavailable and recognized as revenue of the current year. Expendituresare recorded when the related fund liability is incurred, except forprincipal and interest on general long-term debt which are recognized tothe extent they have matured. General capital asset acquisitions arereported as expenditures in governmental funds. Proceeds of generallong-term debt are reported as other financing sources.

Budgets and budgetary accounting:

Budgets are adopted on a basis consistent with generally acceptedaccounting principles. Annual appropriated budgets are adopted for all ofthe District's funds. All annual appropriations lapse at fiscal year end.

Use of estimates:

The preparation of financial statements in conformity with generallyaccepted accounting principles requires management to make estimates andassumptions that affect certain reported amounts and disclosures. Actualresults could differ from those estimates.

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Interfund receivables and payables:

Short-term cash borrowings between funds are considered temporary innature. During the course of operations, numerous transactions occurbetween individual funds for goods provided or services rendered. Theseamounts are reported as "due from other funds" or *due to other funds" onthe balance sheet and are eliminated in the statement of net assets.

Interfund transfers:

Permanent reallocation of resources between funds are classified asinterfund transfers. For purposes of the statement of activities, allinterfund transfers have been eliminated.

Compensated absences:

The District does not have a formal policy on vacation and sick leave.Accordingly, no liability has been recorded in the financial statements.

Fixed assets:

The accounting treatment over property, plant, and equipment {capitalassets) depends on whether the assets are reported in the government-wideor fund financial statements.


The District's capital assets with useful lives of more than one yearare stated at historical costs and comprehensively reported in thegovernment-wide financial statements. The District maintains athreshold level of $500 for capitalizing assets. The costs of normalmaintenance and repairs that do not add to the asset value ormaterially extend useful lives are not capitalized. Capital assetsare depreciated using the straight-line method. When capital assetsare disposed, the cost and applicable accumulated depreciation areremoved from the respective accounts, and the resulting gain or lossis recorded in operations. The range of estimated useful lives bytype of assets is as follows:

Years

Buildings and improvements 15 - 40Equipment 5 - 2 0


In the fund financial statements, fixed assets used in governmentalfund operations are accounted for as capital outlay expenditures ofthe governmental fund upon acquisition.

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Long-term debt:

The accounting treatment of long-term debt depends on whether the debt isreported in the government-wide or fund financial statements.


In the government-wide financial statements, outstanding debt isreported as liabilities and bond issuance costs are capitalized.


The governmental fund financial statements recognize the proceeds ofdebt as other financing sources of the current period. For fundreporting, bond premiums and discounts, as well as issuance costs, arerecognized in the period the bonds are issued. Issuance costs, evenif withheld from the actual net bond proceeds received, are reportedas debt service expenditures.

Equity classifications:


Equity is classified as net assets and displayed in three components:

1. Invested in capital assets, net of related debt - Consists ofcapital assets, including restricted capital assets, net ofaccumulated depreciation and reduced by the outstanding balances ofany bonds, notes, certificates of indebtedness, or other borrowingsthat are attributable to the acquisition, construction, orimprovement of those assets.

2. Restricted net assets - Consists of net assets with constraintsplaced on the use either by (1) external groups such as creditors,grantors, contributors, or laws or regulations of othergovernments, and (2) law through constitutional provisions orenabling legislation.

3 . Unrestricted net assets - All other net assets that do not meet thedefinition of "invested in capital assets, net of related debt" or"restricted."


Governmental fund equity is classified as fund balance. Fund balance isfurther classified as reserved and unreserved, with unreserved furthersplit between designated and undesignated.

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Investments:

State statutes authorize the District to invest in United States bonds,treasury notes, or certificates and time deposits of state banks havingtheir principal office in the State of Louisiana.

The District's investments at December 31, 2006 consisted of timecertificates of deposit purchased from local financial institutions. Thesecertificates are not subject to GASB Statement No. 31 requirements; thusthey are stated at cost.

Custodial credit risk:

Custodial credit risk is the risk that in the event of a bank failure, theDistrict's deposits may not be returned to it. The District does not havea deposit policy for custodial credit risk. As of December 31, 2006,$216,083 of the District's bank balance of $1,779,864 was exposed tocustodial credit risk as follows:

Uninsured and uncollateralized $ 216,083

Note 2. Defined Benefit Pension Plan

Plan description:

The Parochial Employee Retirement System of Louisiana (the "System") is acost-sharing multiple-employer, public employee retirement system (PERS) asestablished and provided for by R.S. 11:1731 of the Louisiana RevisedStatutes (LRS). The System is composed of two distinct plans, Plan A andPlan B, with separate assets and benefit provisions. Employees of theDistrict are members of Plan A. The System is controlled and administeredby a separate Board of Trustees.

All permanent employees working at least 28 hours per week and all electedparish officials are eligible to participate in the System. Under Plan A,employees who retire at or after age 60 with at least 10 years of creditedservice, at or after age 55 with 25 years of credited service, or at anyage with at least 30 years of credited service are entitled to a retirementbenefit, payable monthly for life, equal to 3 percent of their finalaverage compensation multiplied by the employee's years of creditedservice. Final compensation is the employee's monthly earnings during the36 consecutive or joined months that produce the highest average.Employees who terminate with at least the amount of credited service statedpreviously and who do not withdraw their employee contributions, may retireat the ages specified previously and receive the benefit accrued to theirdate of termination. The System also provides death and disabilitybenefits. Benefits are established by state statute.

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The Parochial Employees Retirement System of Louisiana issues a publiclyavailable financial report that includes financial statements and requiredsupplemental information. That report may be obtained by writing toParochial Employees' Retirement System of Louisiana, Post Office Box 14619,Baton Rouge, Louisiana 70898.

Funding policy:

Plan members are required to contribute 9.50% of their annual coveredsalary and the District is required to contribute at an actuariallydetermined rate. The current rate is 12.75% of annual covered payroll.The contribution requirements of plan members and the District areestablished and may be amended by the System's Board of Trustees. TheDistrict's contributions to the System for the years ended December 31,2006, 2005 and 2004 were $3,604, $3,736 and $3,193, respectively, equal tothe required contribution for each year.

Note 3. Capital Assets and Depreciation

Capital assets activity for the year ended December 31, 2006 is as follows:

Beginning Ending

Balance Increases Decreases BalanceGovernmental activities:

Capital assets, not beingdepreciated -

Land $ 54,000 $ -0- $ -0- $ 54,000

Capital assets beingdepreciated -

Buildings and

improvements $ 976,163 $ $ - $ 976,163

Equipment 90,902 18,516 (5,986) 103,432Total capital assets

being depreciated $1,067,065 $ 18,516 $ (5,986) $1,079,595

Less accumulated depreciationfor -

Buildings and

improvements $ (57,293) $ (25,215) $ - $ (82,508)Equipment (66,858) (8,259) 5,986 (69,131)

Total accumulated

depreciation $ (124,151) $ (33,474) $ 5,986 $ (151,639)

Total capital assets

being depreciated,

net $ 942,914 $ (14,958) $ -0- $ 927.956

Governmental activities

capital assets, net $ 996,914 $ (14.958) $ -0- $ 981.956

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Depreciation expense for the year ended December 31, 2006 was charged as follows:

Public safety 5 33 .474

consist of the

WirelessTechnology

Fund

$-

85,849-

$ 85,849

OtherGovernmental

Funds

$ 3,662311, 002

-2,498

$ 317,162

Total

$ 3,662311,00285,8492,498


Note 7. Wireless E911 Service Status

During 2006, the District received $321,479 from wireless service charges tobe used in the implementation of wireless E911 service. In addition, theDistrict incurred $3,635 of expenditures in the implementation of wirelessE911 service during 2006. As of December 31, 2006, all four companies are inPhase I status.

Note 8. Long-Term Debt

Long-term debt of the District is comprised of the following at December 31,2006:

Emergency Management Center Bonds, Series 2004,dated January 1, 2004, due in annual install-ments, interest rate 4.125%, final maturityJanuary 1, 2014.

BalanceOutstanding

$ 500,000

The annual debt service requirements to maturity of bonds payable atDecember 31, 2006 is as follows:

Year EndingDecember 31,

20072008200920102011

2012-2014

Principal

$ 55,00055,00055,00060,00065,000

210,OOP

$ 500.000

Interest Total

$ 19,17,14,12,10,13,

491222953581003406

$ 74,72,69,72,75,

223,

491222953581003406

$ 87.656 $ 587.656

Interest costs incurred and expensed for the year ended December 31, 2006totaled $21,917. This amount relates to governmental activities and isreported as a separate line item in the statement of activities.

23 -


The following is a summary of changes in long-term debt for the year endedDecember 31, 2006:

DueBeginning Ending WithinBalance Additions Deductions Balance One Year

Governmentalactivities:EmergencyManagementCenter Bonds,Series 2004 $550,000 $ -0- 5 (50.000) 5500.000 $ 55.000

Note 9. Due From Other Governmental Agencies

Amounts due from other governmental agencies at December 31, 2006 consist ofthe following:

State of Louisiana:FEMA grant $ 6,810

Louisiana Sheriff's Association:Reimbursements of costs 450

$ 7,260

Note 10. Risk Management

The District is exposed to various risks of loss related to torts; theft ofdamage to, and destruction of assets; errors and omissions; and naturaldisasters. The District purchases commercial insurance to cover any claimsrelated to these risks.

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REQUIRED SUPPLEMENTARY INFORMATION

- 25 -

Exhibit G-l


BUDGETARY COMPARISON SCHEDULEGENERAL FUND

For the Year Ended December 31, 2006

Revenues:Charges for servicesIntergovernmentalInvestment earningsMiscellaneous

Total revenues


Public safety:Personnel costsE911 line usageCommunicationsContract servicesPagerCopierInsuranceOffice suppliesUtilitiesProfessional feesTraining, dues, and

subscriptionsPostage, printing, and

publishingPublic relations and

recognitionRepairs and maintenanceTransportationOther

Capital outlayTotal expenditures

OriginalBudget

$ 250,1501,8002,8003,800

FinalBudget

$ 310,1701,8003,5003,800

Actual

$ 266,0841,0505,91118,659

$ 258,550 $ 319,270 $ 291,704

Variance WithFinal BudgetPositive(Negative)

$ (44,086)(750)

2,41114,859

$ (27,566)

$

$

49,326-

4,000124,00025,0001,45015,0004,000

20, 0006,000

2,000

1,500

1,5005,0003,0007,327

-269,103

$ 47,826-

3,600124,00022,2001,30015,0003,10018,0006,850

1,327

1,500

1,1255,0003,2007,300

-$ 261,328

$ 48,0843,733784

107,97226,6121,29513,3502,54917,6176,850

1,327

1,204

1,1002,8082,5373,03918,516

$ 259,377

$ (258)(3,733)2,81616,028(4,412)

51,650551383-

-

296

252,192

6634,261

(18,516)$ 1,951

(continued)

- 26 -


BUDGETARY COMPARISON SCHEDULEGENERAL FUND (CONTINUED)


Excess (deficiency) ofrevenues over expenditures

Other financing sources:Transfers in

Net change in fund balance

Fund balance, beginning

Fund balance, ending

OriginalBudget

FinalBudget Actual

$ (10,553) $ 57,942 $ 32,327

3,662

$ (10,553) $ 57,942

4,242 4,242

$ 35,989

315,198

Exhibit G-l(continued)


$ (25,615)

3,662

S (6,311) $ 62.184 $ 351,187

$ (21,953]

310,956

$ 289.003

See Note to Budgetary Comparison Schedules.

- 27 -

Exhibit G-2


BUDGETARY COMPARISON SCHEDULEWIRELESS TECHNOLOGY FUND


Revenues:Charges for servicesInvestment earnings

Total revenues


Public safety:Administrative feesWireless - Phase IProfessional fees911 equipment leaseRecorder/radio lease911 line service

Total expenditures

Excess (deficiency) ofrevenue over expenditures

Other financing sources (uses):Transfers inTransfers out

Total other financingsources (uses)

Net change in fundbalance

Fund balance, beginning

Fund balance, ending

OriginalBudget

$ 270,00012,000

FinalBudget Actual

$ 301,000 $ 321,47921,235 21,236

$ 282,000 $ 322,235 $ 342,715

$

$

18,5,

58,

51,65,

197,

-000000300200000

500

$3,1,

59,52,42,

$ 159,

-575046681326875

503

$ 2,3,1,

51,54,45,

$ 159,

880635046130930465

086

$ 84,500 $ 162,732 $ 183,629

$ 320,000 $ 311,002 $ 311,002(75,625) (75,625) (85,849)

$ 244,375 $ 235,377 $ 225,153

$ 328,875 $ 398,109 $ 408,782

75,715 75,715 793,753

$ 404.590 $ 473.824 $1.202,535


$ 20,4791

$ 20,480

$ (2,880)(60)

8,551(2,604)(2,590)

$ 417

$ 20,897

$(10,224)

$ (10,224)

$ 10,673

718,038

S 728.711

See Note to Budgetary Comparison Schedules.

- 28 -

Exhibit G-3


NOTE TO BUDGETARY COMPARISON SCHEDULES

Note 1. Budgets and Budgetary Accounting

The Acadia Parish Communications District uses the following procedures inestablishing the budgetary data reflected in the financial statements:

1. The Board prepares a proposed operating budget for the fiscal yearcommencing January 1. The operating budget includes proposedexpenditures and the means of financing them.

2. Budgets are adopted on a basis consistent with generally acceptedaccounting principles (GAAP).

3. The budget is employed as a management control device during the yearthat assists its users in financial activity analysis.

All budget appropriations lapse at year-end. The budgets presented are theoriginally adopted budget and the final budget.

- 29 -


- 30 -

OTHER SUPPLEMENTARY INFORMATION

- 31 -

Exhibit H-l


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS

December 31, 2006

ASSETS

CashCertificates of deposit

Total assets

CapitalProjectFund

-0-

Training and RoadEquipment IdentificationFund Fund

17,646 $100,000

117.646

Total

48,373 $ 66,01910,000 110,000

58.373 $176.019

FUND BALANCES

Unreserved - undesignated -0- 117,646 58.373 $176.019

- 32 -

Exhibit H-2


COMBINING STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDSFor the Year Ended December 31, 2006

Revenues:Investment earnings


Public safety

CapitalProjectFund

$

Excess (deficiency) ofrevenues over expenditures $ -0-

Other financing sources (uses):Transfers in $ -Transfers out (311,002)

Total otherfinancing sources(uses) $(311,002)

Net change in fund balances $(311,002)

Fund balances, beginning 311,002

Fund balances, ending $ -0-

Training and RoadEquipment IdentificationFund Fund

3,413

1,479

1,934 $

(6,160)

(6,160) $

$ (4,226) $

121,872

117,646

Total

848 $ 4,261

6,503 7,982

(5,655) $ (3,721)

2,498 $ 2,498(317,162)

2,498 $(314,664)

(3,157) $(318,385)

61,530 494,404

58.373 $ 176.019

- 33 -


- 34 -

BROUSSARD, POCHE, LEWIS & BREAUX, L.L.P.C E R T I F I E D P U B L I C A C C O U N T A N T S

4112 West CongressP. O. Box 61400

Lafayette, Louisiana 70596-1400phone: (337) 9884930fax: (337) 984^574

www.bplb.com

Other Offices:

Crowley, LA(337) 783-5693

Opelousas, LA(337)942-5217

Abbeville, LA(337) 898-1497

New Iberia, LA(337) 364-4554

Church Point, LA(337) 684-2855

Herbert Lemoine II, CPA*

Frank A. Stagno, CPA*

Scott J. Broussard, CPA*

L. Charles Abshire, CPA*

P. John Blanchel HI, CPA*

Craig C. Babineaux, CPA*

Peter C. Borrello, CPA*

George J. Trappey III, CPA*

Martha B. Wyatt, CPA*

Fayetta T. Dupre CPA*

Mary A. Castille, CPA*

Joey L. Breaux, CPA*

Terrel P. Dressel, CPA*

Craig J. Viator, CPA*

Staeey E. Singleton, CPA*

John L. Istre, CPA*

R f t i r t ' f l :

Sidney L. Broussard, CPA 1925-2005

Leon K. Poehe, CPA 1984

James H. Breaux, CPA 1987

Erma R. Walton, CPA 1988

George A. Lewis, CPA* 1992

Geraldine J. Wimberley, CPA* 1995

Lawrence A. Cramer, CPA* 1999

Ralph Friend, CPA* 2002

Donald W. Kelley, CPA* 2005

REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASEDON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Wayne Melanconand the Board of Commissioners of theAcadia Parish Communications District

Crowley, Louisiana

We have audited the financial statements of the governmentalactivities, each major fund and the aggregate remaining fundinformation of Acadia Parish Communications District, a componentunit of the Acadia Parish Police Jury, as of and for the year endedDecember 31, 2006, which collectively comprise the District's basicfinancial statements, and have issued our report thereon datedJune 11, 2007. We conducted our audit in accordance with auditingstandards generally accepted in the United States of America andthe standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General ofthe United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the District'sinternal control over financial reporting as a basis for designingour auditing procedures for the purpose of expressing our opinionson the financial statements, but not for the purpose of expressingan opinion on the effectiveness of the District's internal controlover financial reporting. Accordingly, we do not express anopinion on the effectiveness of the District's internal controlover financial reporting.

Our consideration of internal control over financial reporting wasfor the limited purpose described in the preceding paragraph andwould not necessarily identify all deficiencies in internal controlover financial reporting that might be significant deficiencies ormaterial weaknesses. However, as discussed below, we identifiedcertain deficiencies in internal control over financial reportingthat we consider to be significant deficiencies.

- 35 -

*A Professional Accounting Corporation

A control deficiency exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions,to prevent or detect misstatements on a timely basis. A significant deficiency is acontrol deficiency, or combination of control deficiencies, that adversely affects theentity's ability to initiate, authorize, record, process, or report financial datareliably in accordance with generally accepted accounting principles such that there ismore than a remote likelihood that a misstatement of the entity's financial statementsthat is more than inconsequential will not be prevented or detected by the entity'sinternal control. We consider the deficiencies described at #2006-1 and #2006-2 in theaccompanying schedule of findings and responses to be significant deficiencies ininternal control over financial reporting.

A material weakness is a significant deficiency, or combination of significantdeficiencies, that results in more than a remote likelihood that a materialmisstatement of the financial statements will not be prevented or detected by theentity's internal control.

Our consideration of the internal control over financial reporting was for the limitedpurpose described in the first paragraph of this section and would not necessarilyidentify all deficiencies in the internal control that might be significantdeficiencies and, accordingly, would not necessarily disclose all significantdeficiencies that are also considered to be material weaknesses. However we believethat the significant deficiencies described above are material weaknesses.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District's financialstatements are free of material misstatement, we performed tests of its compliance withcertain provisions of laws, regulations, contracts and grant agreements, noncompliancewith which could have a direct and material effect on the determination of financialstatement amounts. However, providing an opinion on compliance with those provisionswas not an objective of our audit and, accordingly, we do not express such an opinion.The results of our tests disclosed instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards and which are described inthe accompanying schedule of findings and responses as items #2006-3 and #2006-4.

The District's responses to the findings identified in our audit are described in theaccompanying schedule of findings and responses. We did not audit the District'sresponses and, accordingly, we express no opinion on them.

This report is intended for the information of management, federal awarding agenciesand pass-through entities. However, this report is a matter of public record and itsdistribution is not limited.

Lafayette, LouisianaJune 11, 2007

- 36 -

Schedule 1-1


SCHEDULE OF FINDINGS AND RESPONSESYear Ended December 31, 2006

We have audited the basic financial statements of Acadia Parish Communications Districtas of and for the year ended December 31, 2006, and have issued our report thereondated June 11, 2007. We conducted our audit in accordance with auditing standardsgenerally accepted in the United States of America and the standards applicable tofinancial audits contained in Government Auditing Standards, issued by the ComptrollerGeneral of the United States. Our audit of the financial statements as of December 31,2006 resulted in unqualified opinions.

Section I. Summary of Auditors' Reports

a. Report on Internal Control and Compliance Material to the Financial Statements

Internal ControlMaterial Weaknesses X Yes NoSignificant Deficiencies X Yes No

ComplianceCompliance Material to Financial Statements X Yes No

Section II. Financial Statement Findings

#2006-1 Segregation of Duties

Finding: Due to the size of the District, an adequate segregation of duties doesnot exist in the administration office. A system of internal control procedurescontemplates a segregation of duties so that no one individual handles atransaction from its inception to its completion. While we recognize that theDistrict may not be large enough to permit an adequate segregation of duties for aneffective system of internal control procedures, it is important that you be awareof this condition. In addition, the current system in place for disbursementsrequires two signatures for all checks. There are three authorized signers. Oneis the Secretary/Treasurer and the other two are Board members. TheSecretary/Treasurer prepares the check and enters it into the accounting system.She then signs the check and stamps the signature of one of the Board members.Before the check is released, that Board member reviews the payment and initialsnext to his signature.

Recommendation: Keeping in mind the limited number of employees to which dutiescan be assigned, the District should monitor assignment of duties to assure as muchsegregation of duties and responsibility as possible. In addition, due to thelimited controls in place, we recommend that the District discontinue using thesignature stamp and instead require original signatures.

- 37 -

Response: It is not feasible for the District to employ more employees foraccounting purposes and general office duties. The District will no longer use thesignature stamp, instead require original signatures. The District will also tryto have an additional authorized to sign checks therefore the signature of theSecretary/Treasurer will only be used if necessary.

#2006-2 Surcharge Deposit

Finding: During the course of the audit, it was discovered that the third quarterpayment from one of the wireless companies in the amount of $23,806 had never beenreceived by the District.

Recommendation: The general ledger activity should be monitored on a regular basisto ensure that all payments due the District are received in a timely manner.

Response: The general ledger activity will be monitored on a regular basis and aspreadsheet will be made for all telephone companies submitting a surchargemonthly/quarterly.

#2006-3 Unsecured Deposits

Finding: As required by State law, government deposits at financial institutionsmust be adequately secured at all times with FDIC and pledged securities of theapplicable institution. At December 31, 2006, the District had deposits in theamount of $216,083 that were not secured as required.

Recommendation: The District should adopt procedures to ensure that deposits areadequately secured at all times.

Response: Procedure will be put into place to have the securities monitoredmonthly.

#2006-4 General Fund Budget

Finding: The original budget adopted by the District for the General Fund was adeficit budget because not all of the available fund balance was included. Statelaw requires that a balanced budget be adopted.

Recommendation: Procedures should be established related to budgeting that ensurea balanced budget is adopted and that all of the available fund balance isincluded.

Response: The District will strive to adopt a balanced budget each year.

- 38 -

Schedule 1-2


SCHEDULE OF PRIOR FINDINGSYear Ended December 31, 2006

Section I. Internal Control and Compliance Material to the Financial Statements

#2005-1 Segregation of Duties

Recommendation: Keeping in mind the limited number of employees to whichduties can be assigned, the District should monitor assignment of dutiesto assure as much segregation of duties and responsibility as possible.

Current Status: This finding is repeated at #2006-1.

#2005-2 Audit Submission

Recommendation: Procedures should be established to ensure thatinformation needed for the audit is available in a timely manner toensure completion of the audit by the deadline.

Current Status: This finding is resolved.

#2005-3 Budget Violation

Recommendation: The budget should be reviewed periodically during theyear, and amended as necessary, to ensure compliance.

Current Status: This finding is resolved.

Section II. Internal Control and Compliance Material to Federal Awards

Not applicable.

Section III. Management Letter

The prior year's report did not include a management letter.

- 39 -

Documents

Acadia Parish Communications Districtapp1.lla.state.la.us/PublicReports.nsf/EDE182C51...ACADIA PARISH COMMUNICATIONS DISTRICT FINANCIAL REPORT DECEMBER 31, 2006 Under provisions of